Despite the bad market, crypto transactions in Africa are rising. Even as prices fall, the number of Africans utilising cryptocurrency for regular transactions rather than for speculation is still significant.
The year 2022 has been highly challenging for the markets for digital assets and cryptocurrencies, with the value of many major cryptocurrencies dramatically falling after reaching record highs in the previous year. About 60% of bitcoin was lost. More than 65% of Ethereum has been lost. The full collapse of the Terra stablecoin in May has shaken trust in the emerging industry for many investors and market participants. At a time when cryptocurrencies are becoming more popular in countries across Africa, a challenging bear market is currently underway.
A target market for investments in the cryptocurrency industry in the upcoming years, the African cryptocurrency market, has reached a value of over $100 billion last year. At a time when cryptocurrencies are becoming more popular in countries across Africa, a challenging bear market is currently underway. Between 2020 and 2021, the African cryptocurrency market will increase by more than 1200, predicted Chainalysis, a blockchain forensics company. They reported that Kenya, Nigeria, South Africa, and Tanzania, the four African nations, all have adoption rates of cryptocurrencies that are among the top 20 worldwide.
Instead of institutional investors, ordinary users are the main drivers of this expansion. According to Chainalysis, the majority of transaction volume in African marketplaces “consists of large retail and small retail payments above the global average.” This shows that “baseline adoption among regular users is increasing.”
The Future of Cryptocurrency in Africa
Africa is the second-largest continent in the globe, and it has about 1.5 billion people, according to estimates. With an average age of 19.7 years, Africa has the youngest population among the other continents and is 10.7 years younger than the global average.
African youth hold a promising key to the continent’s sustainable development since 60% of the continent’s population is under 25.
African nations have suffered from poverty, slow growth, severe economic losses, and crises for a very long time as a result of past colonisation, civil wars, and harsh geography.
However, because of its weak infrastructure, Africa has become a significant market for cryptocurrencies. Blockchain networks may be accessed by cryptocurrencies using just a smartphone and a network connection. Additionally, you can learn the fundamentals of cryptography via relevant cryptocurrency blogs.
In Africa alone, the value of cryptocurrencies rose by roughly 1,200% last year. According to Chainalysis Insights, in terms of transaction volume, Africa has the finest peer-to-peer (p2p) payment platforms in any area. It has represented more than 70 million Nigerians trading cryptocurrency over the last six months.
Cryptocurrency Trading Continues to Grow Despite Ban
The majority of African countries’ central banks, including Kenya and Nigeria, take a hostile attitude toward bitcoin exchanges. Therefore, the only workable alternative available to a cryptocurrency dealer in Africa is the deployment of a P2P platform, barring the inconvenience of using a VPN to access servers in other nations. for many people. The Central Bank of Kenya warned Kenyans to quit trading Bitcoin in December 2015. All banks were prohibited from using, owning, trading, or dealing in cryptocurrencies by the Central Bank of Nigeria in 2017.
The bitcoin sector is still expanding despite the difficulties that stopping cryptocurrency trading in Africa is expected to present. Numerous African developers have produced a wide range of cryptocurrency trading apps in Africa to assist cryptocurrency trading, each serving an important function.
How Africans Still Thrive In The Crypto Industry
Breet is an OTC cryptocurrency trading platform, designed to immediately convert cryptocurrencies for direct cash withdrawals to nearby bank accounts, Breet is an OTC cryptocurrency trading platform.
For the purpose of buying and selling Bitcoin, Ethereum, and other crypto coins in Africa, more platforms have been created, including Remitano and Quidax. African cryptocurrency traders can now access platforms from foreign cryptocurrency exchanges like Binance and Coinbase.
The African cryptocurrency market is expanding quickly, and there are numerous blogs where you can read more about Bitcoin, the most recent cryptocurrency news, and cryptocurrency pricing.
Additionally growing is the NFT community in Africa, particularly Nigeria. A Nigerian coffin dance craze and an elderly man’s artwork both brought in over 1 million Naira on April 14. It is expected that Africa will likely dominate the cryptocurrency market in the upcoming ten years due to the continent’s consistent growth in this area. With more than 52% of Africans under the age of 25, the youth have a significant chance to influence positive change in the development of Africa in the future.
